Pittards to close Scottish fellmongery
UK leather producer Pittards announced on Friday, 9 November, 2001, that it plans to make 100 staff redundant and shut down its fellmongery and wet blue plant at Kinghorn in Scotland. The company also warned of a trading loss for the current year to December 2001, blaming a downturn in orders in the wake of the September 11 attacks - and in particular the rescheduling and cancellation of orders by US retailers.
The closure of Kinghorn accounts for 75 of the job losses, with the rest coming from other parts of the company. Finance director John Buckley confirmed that the company has now reduced its workforce by 12%, but added that he believed Pittards was now well placed to cope with the present economic climate.
The sheepskin market has been badly hit by the reduction in supply and rise in prices following the outbreak of foot and mouth. The remaining production will now transfer to another Scottish factory, located at Langholm, while the wet blue activities will be moved to the company’s shoe and leather goods division based in Leeds.
The closure of the Kinghorn plant will cost the company around £1 million ($1.45 million), but the consolidation of production at Langholm and Leeds is expected to "significantly" enhance the contributions from those sites. There is also the possibility of redeveloping the 10-acre Kinghorn site with an application for residential planning permission.
In a statement, the company said: "With lower costs, more efficient production facilities, a range of innovative, technically advanced leather and our broad international customer base, the group will be better placed to operate profitably in the current market, and to benefit from a recovery in global demand next year."
